bpost (BPOST) Q2 2024 earnings summary

Executive summary

• Group operating income for Q2 2024 was €988.2 million, down 3.8% year-over-year, mainly due to North American weakness, while Belgium and Eurasia showed resilience and growth.

• Adjusted EBIT for Q2 was €57.8 million (margin 5.8%), a decline of 15.9% year-over-year, primarily from North America.

• Staci acquisition closed two months ahead of schedule, expected to contribute €8–9 million EBIT per month from August 2024, accelerating transformation and strengthening 3PL activities in Europe.

• Belgium and Eurasia segments benefited from election mail, parcel growth, and cross-border expansion, offsetting mail volume decline and lower state press compensation.

• Results are broadly in line with recent guidance.

Financial highlights

• Q2 2024 group operating income: €988.2 million (-3.8% YoY); adjusted EBIT: €57.8 million (-15.9% YoY); reported EBIT: €47.7 million.

• Adjusted net profit for Q2 was €39.3 million, down 13.8% year-over-year; net result for Q2: €31.7 million.

• Free cash flow for Q2 was -€84.9 million, impacted by working capital seasonality; net debt at June 30, 2024, was €392.1 million, a 6.8% decrease year-over-year.

• CapEx for Q2 was €25.5 million; H1 2024 CapEx was €39.1 million, down 51.3% year-over-year.

• EBITDA for Q2 was €127.2 million, with a margin of 5.8% (adjusted EBIT).

Outlook and guidance

• 2024 group adjusted EBIT expected between €165 million and €185 million, excluding Staci; Staci to add €8–9 million EBIT per month from August.

• Annual parcel volume growth guidance revised from high single-digit to mid-single-digit due to modest growth and market headwinds.

• North America expected to remain under pressure, with new customer onboarding post-peak and material impact anticipated in late 2025.

• Belgium: 5–7% adjusted EBIT margin expected, down from 6–8%, due to lower press contract margins and cost inflation.

• CapEx guidance for 2024 revised down to €150 million.